India Raises Excise Duty On Petroleum Products

In a bid to take away windfall gain accruing to producers, the government will now charge Rs 23,250 per tonne additional tax on domestically produced crude oil.
Excise duty raised on petroleum products in India | REPRESENTATIVE
Excise duty raised on petroleum products in India | REPRESENTATIVE

The government of India on Friday raised excise duty on exports of petrol, diesel and aviation turbine fuel (ATF) with immediate effect from July 1.

The decision comes as the government looks to regulate prices and maintain stocks of petroleum products in the domestic market. According to reports, an additional excise duty of Rs 5 per litre will be levied on petrol will, Rs 6 per litre on ATF and Rs 12 per litre on diesel.

Moreover, in a bid to take away windfall gain accruing to producers, the government will now charge Rs 23,250 per tonne additional tax on domestically produced crude oil.

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However, neighbouring countries Nepal and Bhutan have been exempted from the list of countries required to pay the additional excise duties.

The Ministry of commerce and industry of the government of India said, “However, Nepal and Bhutan have been exempted from paying additional duty on these petroleum products. Also, this condition is not applicable to 100% EoUs and SEZ unites.”

Apart from this, exporters will be required to submit a self-declaration to the concerned authority confirming that 50 per cent of the quantity mentioned in the shipping bill will be supplied in the domestic market during the current financial year, the ministry mentioned.

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